Regional Development's Inequalities Keep Growing in Albania

Year after year, the differences in the country's regional development are deepening, ruining the prospects of the counties, even though natural resources offer opportunities. 

From 2016 to 2021, the District of Tirana has further increased its weight in the national economy. Durrës is almost in place and the other 10 counties have suffered a decline in their contribution to the overall economy. 

In 2021, living standards in Kukes were less than half of those in the capital. The demography and economy of the counties have fallen into a vicious circle. Year after year, the regions are rapidly depopulating, mainly due to limited economic opportunities. 

On the other hand, the shrinking population becomes an obstacle to further development. Experts advise the government to fairly allocate financial resources and development projects to the regions 

When you look at the natural resources of Albania from North to South, with high mountains, wild rivers, rich subsoil and a long coastline, even the deepest village of the country should be prosperous, but it is not. 

Albania's villages, for the most part, have turned into ruins from depopulation, but even the big cities are rapidly emptying. Demographic movements have brought population concentration in Tirana and Durrës, as after these developments, it can be seen that year after year the economic inequality between the regions is increasing. 

In 2021, the economy of the District of Tirana contributed 44% of the National Domestic Product, from 40% in 2016. While the weight of the capital in the national economy is growing rapidly, the contribution of the districts is decreasing, signaling further increase in inequality. 

The GDP in the North Region, which consists of 5 counties, Dibra, Durres, Kukës, Lezha and Shkodra, reached 415.2 billion ALL in 2021, equal to 22.3% of the total national GDP, marking an annual decrease with 0.2%. 

The economy of the South Region with the counties of Berat, Fier, Gjirokastër, Korçë, Vlorë had a similar trend. 

INSTAT referred that in 2021, the GDP of the South Region reached 504 billion ALL, contributing 27.2% of the national economy. The weight of this Region, in the general economy, decreased by 0.5% compared to 2020. 

In the Center Region, where only Elbasan and Tirana counties are part, the value of production reached 936 billion ALL in 2021, accounting for 50.4% of the national economy. The share of the Center region in the overall economy increased by 0.6% in one year. 

Agron Haxhimali, from the Institute for Albanian Municipalities, said that the growing inequality in the regions of the country is due to the lack of a vision for today, the near and distant tomorrow from politics and power. 

He added that the investments were not efficient and did not bring the right impact for the citizens and did not have an attractive role for the local, regional or national business and not at all for the international one. 

Large-scale migration has also created large vacuums in the workforce and in human resources, knowledge and capacities that hinder the sustainable development of counties. 

In 2021, GDP per capita in Tirana increased by 13% to 886 thousand ALL per capita, or 34% above the national average. On the other hand, in the poorest region of the country, Kukësi had a GDP per capita of 395 thousand ALL, marking an increase in nominal terms by 8.74%, compared to 2020. The GDP per capita of this region was 59 % of national average. 

Ana Beqo, from the Altax Center, pointed out that per capita incomes in the country's geographic and economic regions have a significant disproportion between them. 

These data should serve for the implementation of sustainable development programs and the quality of life of the population in the future. 

The decentralization reform, which was approved and entered into force in 2014, aimed above all at improving the quality of life at the municipal level, seems to have had the opposite effect. 

The World Bank noted in a recent publication that most local authorities have proven unable to increase operational and financial capacity, manage and deliver services consistently. 

The result was the lack of services and their low quality. Deficiencies in coordination with the central government, the lack of standards and accountability mechanisms have contributed to the continuation of these deficiencies, which have a direct negative impact on human capital, the environment and the economic opportunities of local units in Albania, the Bank emphasized. 

Just as the national economy does not have a clear model on which it should develop in the long term, regional models are early concepts for Albania. 

Time does not wait, as the population of Albania is shrinking precisely because of the lack of skills to improve the assets and natural resources for the benefit of the communities.

(Source: Monitor)